Previous : -0.3%
Forecast : -1.5%

Definition : The general reference to durable goods means manufactured products which have a long time span of minimum a year preferably three years and above, products that does not easily wear out and continues to yield services or utility over the period and not used up once, such as cars refrigerators, and business equipments.

The Durable Goods Report provides compiled data for the month prior to the release; it covers new orders, total shipments, total unfilled orders, and inventories. The data provided is form more than 4000 manufacturers covering over 85 industries providing an almost compete coverage to the United States; it is released by the US Census Bureau provided in current dollars along with a percentage change from the previous month.

The report also includes the Durable Goods Excluding Autos which are considered the most volatile in the measure; the data are sensitive to change in consumer expenditure patterns and are also subject to revisions for the prior three months if they material affect prior-released results, and also in the report that follows the release which is included in the Factory Orders report.

Why is it useful?Usually, durables goods have a slight effect on the currencies market, so the importance level of this index is considered moderate.

In general, increasing durable goods percentage clearly indicates increasing production quantity, which has a positive effect on entire economic growth levels, which leads to improving the economy and creating an upward pressure on the local currency.

Viewing other main reasons to increasing durable goods percentage, we will find that the consumers' confidence in the local economy refers to be a positive index to increasing consumers' willingness to spend money, and achieving by that higher capacity utilization levels in the economy.

The effect of durable goods on the stock market is considered to be very slight, because it could have a considerable effect on the companies sector which specialized in producing those goods, but at the same time it might not have any effect on the entire index because it includes companies shares in different sectors.

For example, increasing of company shares specialized in producing durable goods may equal declining of other companies' shares which do not, and at the end the effect of this factor is not going to make any considerable changes on the entire index.